A new report from the Plant Based Foods Institute (PBFI), Kroger, and data insights firm 84.51° reveals a continued shift in consumer spending from animal-based to plant-based foods in the USA, now observed for the fourth consecutive year.
The “Plant-Based Migration Analysis”, which studied approximately seven million households between 2022 and 2023, documents a growing preference for plant-based alternatives across key food categories. This research builds on data collected since 2019, offering a comprehensive view of the evolving consumer landscape and its potential implications for retailers.
“This research reveals evidence of a shift away from animal-based food and toward plant-based foods”
The report highlights a consistent trend: consumers who begin purchasing plant-based foods, or expand their plant-based selections, are steadily reducing their spending on related animal-based products. The categories most affected by this shift include milk, cheese, and fresh meat. This trend reflects broader changes in consumer behavior, with shoppers opting for plant-based alternatives as availability and variety increase.
Julie Emmett, Vice President of Marketplace Development at PBFI, noted that these findings point to a shift away from animal-based foods for various reasons, providing retailers with a blueprint for future strategies. She stated, “This research reveals evidence of a shift away from animal-based food and toward plant-based foods for a variety of reasons. Retailers can use this extensive research to develop merchandising and marketing strategies for long-term growth.”
Health and price as key drivers
Two main factors are motivating this shift towards plant-based products: health concerns and the rising cost of animal-based foods. Nearly half of the households surveyed indicated that health was their primary reason for increasing plant-based purchases, with this figure rising by 7% over the previous year. Additionally, the rising cost of animal-based products has become a significant influence, with a 9% increase in the number of households citing price as a factor in their decision to switch to plant-based alternatives.
This price sensitivity, combined with the perceived health benefits of plant-based products, is driving a migration away from traditional animal-based foods, particularly in categories such as milk and meat. The report also indicates that consumers engaged in plant-based purchasing are showing increased loyalty, with notable growth in plant-based milk, frozen meat, and frozen meals.
Barriers to adoption
While the shift towards plant-based products is evident, challenges remain in expanding the market further. The report identifies several key barriers preventing some consumers from fully embracing plant-based foods. Taste and flavor were cited as major concerns, with 32% of households reducing their plant-based spending due to dissatisfaction with the taste of available products. Budget constraints were also mentioned, as well as a perceived lack of variety when compared to animal-based options.
“Despite economic challenges […] shoppers have remained engaged and interested in plant-based foods.”
The report concludes that there are several areas where retailers can capitalize on the growing interest in plant-based products. Offering competitive pricing and increasing promotions could help make plant-based foods more accessible to a broader consumer base, particularly those concerned with budget constraints. Expanding product variety and improving taste and texture could also address the concerns of consumers who are hesitant to fully adopt plant-based alternatives.
Shoppers remain engaged & interested in plant-based
The research further suggests that focusing on convenience, especially with ready-to-heat meals, may appeal to time-pressed consumers, particularly among older demographics who are less focused on health benefits but seek easy meal solutions. The report recommends that retailers also consider educational efforts, such as offering recipe ideas and nutritional information, to inspire more consumers to explore plant-based products.
Linette Kwon, Data and Consumer Insights Analyst at PBFI, acknowledged these challenges but remained optimistic about the opportunities for growth. “Despite economic challenges in the past few years, we continue to see that shoppers have remained engaged and interested in plant-based foods. As the challenges of price and findability improve, we believe different plant-based categories will have many more opportunities to better reach shoppers,” Kwon stated.
Download the full report here.
